diff --git a/doc/exporting_classes.html b/doc/exporting_classes.html
index e5932e70..61c5ef88 100644
--- a/doc/exporting_classes.html
+++ b/doc/exporting_classes.html
@@ -98,6 +98,12 @@ Notes:<ul>
 
 <li>Any function added to a class whose initial argument matches the class (or
 any base) will act like a member function in Python.
+
+<li>To define a nested class, just pass the enclosing
+<tt>class_builder</tt> (instead of a <tt>module_builder</tt>) as the
+first argument to the nested <tt>class_builder</tt>'s constructor.
+
+
 </ul>
       <p>
          We can even make a subclass of <code>hello.world</code>:
diff --git a/include/boost/python/class_builder.hpp b/include/boost/python/class_builder.hpp
index 4a9ec1b2..fe2a7b74 100644
--- a/include/boost/python/class_builder.hpp
+++ b/include/boost/python/class_builder.hpp
@@ -25,6 +25,22 @@ class class_builder
         module.add(ref(as_object(m_class.get()), ref::increment_count), name);
     }
     
+  template <class OtherT, class OtherU>
+    class_builder(class_builder<OtherT, OtherU>& cls, const char* name)
+        : m_class(new detail::extension_class<T, U>(name))
+    {
+        cls.add(ref(as_object(m_class.get()), ref::increment_count), name);
+    }
+    
+  template <class OtherT, class OtherU>
+    class_builder(detail::extension_class<OtherT, OtherU>* cls,
+                  const char* name)
+        : m_class(new detail::extension_class<T, U>(name))
+    {
+        cls->set_attribute(name,
+                           ref(as_object(m_class.get()), ref::increment_count));
+    }
+    
     ~class_builder()
     {}
 
diff --git a/test/comprehensive.cpp b/test/comprehensive.cpp
index d25b131a..6c7cc4d3 100644
--- a/test/comprehensive.cpp
+++ b/test/comprehensive.cpp
@@ -67,6 +67,16 @@ Foo::PythonClass::PythonClass(boost::python::module_builder& m)
     def(&Foo::add_len, "add_len", &FooCallback::default_add_len);
     
     // Since pure() is pure virtual, we are leaving it undefined.
+
+    // And the nested classes.
+    boost::python::class_builder<Foo::Foo_A> foo_a(*this, "Foo_A");
+    foo_a.def(boost::python::constructor<>());
+    foo_a.def(&Foo::Foo_A::mumble, "mumble");
+
+    boost::python::class_builder<Foo::Foo_B> foo_b(get_extension_class(),
+                                                   "Foo_B");
+    foo_b.def(boost::python::constructor<>());
+    foo_b.def(&Foo::Foo_B::mumble, "mumble");
 }
 
 BarPythonClass::BarPythonClass(boost::python::module_builder& m)
@@ -223,6 +233,16 @@ const char* Foo::mumble()
     return "mumble";
 }
 
+const char* Foo::Foo_A::mumble()
+{
+    return "mumble a";
+}
+
+const char* Foo::Foo_B::mumble()
+{
+    return "mumble b";
+}
+
 void Foo::set(long x)
 {
     m_x = x;
diff --git a/test/comprehensive.hpp b/test/comprehensive.hpp
index ed90f061..deb68a88 100644
--- a/test/comprehensive.hpp
+++ b/test/comprehensive.hpp
@@ -42,6 +42,10 @@ class Foo                // prohibit copying, proving that it doesn't choke
     std::string call_pure();                    // call a pure virtual fuction
     int call_add_len(const char* s) const;      // virtual function with a default implementation
 
+    // A couple nested classs.
+    struct Foo_A { const char* mumble(); };
+    struct Foo_B { const char* mumble(); };
+
  private:
     // by default, sum the held value and the length of s
     virtual int add_len(const char* s) const;
diff --git a/test/comprehensive.py b/test/comprehensive.py
index c49a4add..7d0bec79 100644
--- a/test/comprehensive.py
+++ b/test/comprehensive.py
@@ -230,6 +230,14 @@ Polymorphism also works:
     >>> baz.get_foo_value(polymorphic_foo)
     1000
 
+Simple nested class test:
+    >>> foo_a = Foo.Foo_A()
+    >>> foo_a.mumble()
+    'mumble a'
+    >>> foo_b = Foo.Foo_B()
+    >>> foo_b.mumble()
+    'mumble b'
+
 Pickling tests:
 
     >>> world.__module__
@@ -343,7 +351,7 @@ Special member attributes. Tests courtesy of Barry Scott <barry@scottb.demon.co.
     ...             '__doc__', '__module__', 'fred', 'i_am_derived_from_base']
     ... else:
     ...     assert dir(df) == [
-    ...         '__del__', '__doc__', '__init__', '__module__', 'add_len',
+    ...         'Foo_A', 'Foo_B', '__del__', '__doc__', '__init__', '__module__', 'add_len',
     ...         'call_add_len', 'call_pure', 'fred', 'mumble', 'set']
     ...     assert dir(db) == ['__doc__', '__module__', 'fred'
     ...                       , 'i_am_base', 'i_am_derived_from_base']